Boston Private Bank Finances First New Construction in Dudley Square in 40 Years with Innovative $3.4 Million Tax Exempt Bond.

BOSTON -- Boston Private Bank & Trust Company, a wholly owned subsidiary of Boston Private Financial Holdings, Inc. (Nasdaq:BPFH), announces the completion of construction of the 24,000 square-foot headquarters of Central Boston Elder Services (CBES) in Dudley Square, Roxbury. The project, which is funded through an innovative tax-exempt bond, is the first new construction in Dudley Square in more than 40 years, and will create new jobs and services in the community.

The unusual 15-year funding mechanism provides below-market financing for the development, enabling CBES to centralize their programs and services that promote elder self-sufficiency by providing in-home short- and long- term care. Boston Private Bank provided the primary financing through the private placement purchase of a $3.4 million tax exempt bond, issued by the Boston Industrial Development Finance Agency (BIDFA), a Boston Redevelopment Authority (BRA) affiliated board that promotes economic development in the City of Boston. By purchasing the tax exempt bonds, Boston Private Bank passed on the tax savings to CBES in the form of a reduced interest rate. MassDevelopment also provided a $579,000 mortgage insurance guarantee. The total cost of the development was $9 million.

The dedication ceremony for the new facility at 2315 Washington Street will be on June 24 from 2 to 4 PM. On hand will be Esther Schlorholtz, SVP and Community Reinvestment Officer at Boston Private Bank; Mayor Thomas Menino; Boston Redevelopment Authority Director Mark Maloney; and CBES Board Chair Perry Smith and Executive Director Catherine Hardaway.

As Corporate Community Reinvestment Officer and Senior Vice President of Boston Private, a full service commercial bank headquartered in Boston, with assets of $2 billion, Ms. Schlorholtz is responsible for community development for residential, small business and commercial services for the bank.

"Boston Private Bank is very pleased to have worked with Central Boston Elder Services on this beautiful facility which is already making a huge difference in Dudley Square," said Ms. Schlorholtz. "Not only is it already providing first class administrative space for CBES, but it will also contribute to Dudley Square's revitalization. It will greatly enhance CBES's ability to serve elders in surrounding neighborhoods."

Mark Thompson, CEO of Boston Private, said, "We take great pride in the community reinvestment projects that define Boston Private as a leading financial institution in Boston with great commitment to the citizens of the area. We congratulate Central Boston Elder Services for its fine work in the community and look forward to our continuing partnership with them in providing important services."

About Boston Private Bank & Trust Company

Established in 1987, Boston Private Bank offers deposit and cash management services, residential mortgages, investment management services, and commercial banking for both individuals and businesses. The Bank is a leader in residential lending and provides commercial banking services to many of New England's leading small and mid-size corporations. Under its Accessible Banking program, the Bank is an active provider of real estate financing for affordable housing, economic development, and small businesses. Boston Private Bank's investment management emphasis is on mid- to large-cap equity and actively managed fixed income portfolios. For further information, visit www.bostonprivatebank.com.